De La Rue nears £300 million sale of authentication arm

In the United Kingdom, De La Rue, a prominent banknote printing company, is approaching the final stages of selling its authentication division for £300 million. This move is part of a broader strategy to facilitate the potential sale of its currency printing operations. The agreement with Crane NXT, a publicly listed group in the United States, is expected to be formally announced to the London Stock Exchange. As a part of ongoing restructuring efforts, this sale, first unveiled in October 2023, symbolizes a crucial step towards stabilizing De La Rue's financial situation. Over the past few years, De La Rue has faced significant financial challenges, marked by a series of profit warnings and operational difficulties, particularly in regions like India and Kenya. The company has struggled with its balance sheet, notably making a deferral of pension payments due to financial strains. To address these issues, the board of directors, led by Chairman Clive Whiley, has been exploring various strategies to maximize shareholder value, including the potential sale of the entire company or specific divisions to interested buyers. The authentication division specializes in providing traceability software to government clients, aimed at detecting fraud. The impending sale will leave De La Rue focused on negotiating with prospective buyers for its market-leading currency printing business, known for its contracts with central banks around the world. Edi Truell, a noted financier, is among those expressing interest in acquiring the currency-printing unit. As De La Rue prepares for the conclusion of the sale agreement, the outcome remains crucial not only for its future but also for its shareholders who have faced ongoing challenges over the years. The impending announcements are likely to influence the company's direction significantly, paving the way for either a restructuring or further consolidation of its operations in the competitive printing industry.